MILLINOCKET REGIONAL HOSPITAL

Finding 2021-102: Accuracy of Reporting Federal Agency: U.S. Department of Health and Human Services Award Name: COVID-19 Provider Relief Funds Program Year: Provider Relief Reporting Period 1 Assistance Listing Number: 93.498 Criteria: Management was responsible for reporting accurate lost revenues based on the terms of the grant agreement. Condition: During compliance testing, it was identified that certain revenues included in the final report were not accurate based on the definitions of the grant agreement and supporting documentation. Context: The lost revenue amount ultimately calculated and reported for the period was not accurate. Cause: The supporting documentation retained that calculated lost revenues had certain inaccuracies in the revenues reported for the fiscal year ended June 30, 2021. Effect: As a result of the condition, Millinocket Regional Hospital and Subsidiary's required reporting for this grant was misstated, however Millinocket Regional Hospital and Subsidiary was able to recalculate the appropriate lost revenues and, in conclusion, report that there were enough losses to charge to this federal award to support the propriety of all funds received. The revenue stated on the grant report was greater than what is reflected in the audited financial statements; had the report reflected the correct amount, the loss indicated would have been greater. Therefore, Millinocket Regional Hospital and Subsidiary's unmet need was understated in the report. Recommendation: In the future, Millinocket Regional Hospital and Subsidiary should ensure it implements appropriate processes and controls to ensure a review is performed prior to submission to the awarding agency. Views of Responsible Officials: Management acknowledges the finding and will submit an amended report to the awarding agency.

Identifying Number: 2021-102: Accuracy of Reporting Criteria: Management was responsible for reporting accurate lost revenues based on the terms of the grant agreement. Condition: During compliance testing, it was identified that certain revenues included in the final report were not accurate based on the definitions of the grant agreement and supporting documentation. Context: The lost revenue amount ultimately calculated and reported for the period was not accurate. Cause: The supporting documentation retained that calculated lost revenues had certain inaccuracies in the revenues reported for the fiscal year ended June 30, 2021. Effect: As a result of the condition, Millinocket Regional Hospital and Subsidiary's required reporting for this grant was misstated, however Millinocket Regional Hospital and Subsidiary was able to recalculate the appropriate lost revenues and, in conclusion, report that there were enough losses to charge to this federal award to support the propriety of all funds received. The revenue stated on the grant report was greater than what is reflected in the audited financial statements; had the report reflected the correct amount, the loss indicated would have been greater. Therefore, Millinocket Regional Hospital and Subsidiary's unmet need was understated in the report. Recommendation: In the future, Millinocket Regional Hospital and Subsidiary should ensure it implements appropriate processes and controls to ensure a review is performed prior to submission to the awarding agency. Contact: Mellissa McAvoy, Chief Financial Officer Corrective Actions Taken or Planned: Management acknowledges the finding and will ensure appropriate review of supporting calculations utilized within the report. An amended report will be filed with the awarding agency.